Factors that Influence the Effectiveness of Internal Audit in Malaysia

The paper examines the influencing factors on Malaysia Internal Audit Efficiency. Descriptive statistical analysis, interpretive statistics including Pearson Correlation, and multiple regression analysis of variance are used to examine factors such as independence of internal auditing, basic competence of internal auditors, the relationship between internal auditors and external auditors and management support for the effectiveness of the internal audit. The SPSS statistical package was also used for quantitative and qualitative analyses, such as the multiple relapsing model and other tests. According to the results, when it comes to internal audit efficiency, multiple factors have a significant relationship with one another (internal auditor independence and managerial staff assistance for internal audit) throughout a favourable encouragement on the efficacy of internal audits. A good communication system between external auditors and internal
auditors can result in efficient exchange of information and effective control over the company’s internal audit. In addition, this research looks at how the activity theory might provide insight into the impact that board qualities and important audit matter disclosure have on publicly traded companies in Malaysia. It is suggested that future studies use additional panel data to evaluate factors over a longer period and with larger samples and to account for confounding variables like profit and company size.